Doom spending: Shopping Habits That Can Make Millennials and Gen Z Miserable

Have you ever felt like it's very easy to spend money impulsively? In the midst of an unstable economy and the huge influence of social media, we, the younger generation, often get trapped in a consumptive lifestyle without considering our financial condition. Well, this phenomenon has been widely discussed on social media lately, called doom spending. So, what is it? What are the impacts? How can we handle it? Let’s take a look!

What is Doom Spending?

Doom spending is the habit of impulsively shopping without long-term consideration as a way to relieve stress or "healing" from the pressures of economic conditions and uncertainty about the future. In simple terms, doom spending refers to spending money unnecessarily for instant satisfaction. According to Psychology Today, survey results show that doom spending is common among Millennials (43%) and Gen Z (35%).

In this phenomenon, individuals tend to believe that saving is unimportant and that financial goals cannot necessarily be achieved through saving. Therefore, they prefer to enjoy life at the moment and spend money on luxurious experiences or items that they don’t really need. The influence of influencers on social media, the Fear of Missing Out (FOMO), and massive discounts on e-commerce platforms also contribute to this phenomenon.

What are the Impacts?

As defined, doom spending is often seen as a quick way to release stress and achieve instant satisfaction. However, nothing in this world is truly instant; things that come too easily often come with various risks. One of the risks is overspending, leading to empty wallets due to lack of proper planning. In fact, doom spending often interferes with long-term financial goals. As proven by Katadata Insight Center survey, 49% of Gen Z in Indonesia struggle to save consistently.

Meanwhile, from a psychological perspective, the behavior of doom spending, intended to relieve stress, can actually lead to feelings of guilt, regret, financial stress, and even anxiety after making impulsive purchases.

Don’t Worry, Doom Spending Can Still Be Overcome!

After understanding the causes and effects of doom spending, then we need to take steps to control it. For those of you wanting to avoid the trap of doom spending, here are three tips you can try:

1. Want? Needs?

When considering buying an item, ask yourself, "Do I really need this item, or is it just a want?" If you’re still uncertain, it’s better to postpone the purchase. You can also apply the 24-hour rule, which involves delaying a purchase for 24 hours to avoid emotional buying. This system can help you evaluate whether the purchase is truly necessary or just a fleeting emotion.

2. Create a Budget, Set Priorities

Always make a realistic monthly budget. Determine how much money you can allocate for shopping, along with its scale of priorities. Generally, living expenses—including lifestyle and debt repayments—should be 50%-70% of your income. Strive to stick to your monthly budget and focus on planned purchases according to your needs.

3. Change Your Habits

You can divert impulsive buying habits by engaging in other positive activities. For example, try meditation, exercise, or other activities you enjoy. Such alternatives can serve as a healthier form of “healing” and keep you away from doom spending.

By understanding doom spending and knowing how to handle it, we can manage our finances more wisely and avoid “poverty.” Remember, life is not for shopping, but shopping is for living! A healthy wallet = a bright future. Always keep an eye on your expenses to steer clear of doom spending! ?✨